Why consolidating your debts can save you money

If, for whatever reason, you have a number of small, alternative and probably therefore high interest loans, consolidating to a single lower cost loan can reduce your regular payments and save real cash by reducing the interest you pay. But what if I have bad credit?  You can still reduce your loan repayments and interest paid by choosing a Guarantor loan.

How to do Debt Consolidation by applying for Guarantor Loans?

This works so that you can borrow at lower rates of interest based on the credit history of your Guarantor not your own. So, a friend or family member with a good to average credit history can, if willing, save you money and reduce your outgoings. Here’s an example to prove the point;-

How to Calculate Your Guarantor Loan?

You have a number of small loans, or rent to own assets that add up to nearly £4,000 of credit. Typically these may be costing something in the region of *£365 in payments each month, and on average, something like *£1,250 in interest each year (APR varying from 69.9% to 1,274%).

An Advantage29 loan for £4,000 over 3 years from Lendfair will cost £162.08 per month, with average annual interest of £611.63 (APR 29.9% Fixed) over it’s life. How much fairer is that!

Time to check out www.lendfair.co.uk

*Bright house – £1,800 of goods repaying £23 per week for 156 weeks, APR 69.9%  and a £1,800 loan from 118118 repaying £142.65 per month for 24 months APR 99.9% and a loan of £400 from Mr Lender  repaying an average £123.38 per month for 6 months APR approx. 1,274%.   Total interest paid over 3 years £3,752 (annual average £1250.67)

PRESS RELEASE

LendFair are pleased to announce that with effect from 6th October 2016 they are

fully authorised by the Financial Conduct Authority (FCA) to undertake Consumer

Credit Lending, collection and debt adjustment.

Full permission 723561

For further information please contact James,

Tel:  01279 636260

Email: press@lendfair.co.uk   or visit

Website: www.lendfair.co.uk

Cost of Alternative Consumer Borrowing

A huge drop in payday loans given out to people short on money has increased fears of a rise in borrowing from illegal lenders. Yet safer, cheaper ways to borrow do exist and they should be your first port of call if you’re looking for some quick, short-term cash options.

 

Fall in payday loans

Today’s report by the Consumer Finance Association (CFA), the trade body that represents short term lenders, says eight out of ten short-term loan applications are now turned down.

CFA figures also show the number of payday loans given each month in 2015 is 70% less than in 2013.

This fall in people receiving payday loans follows tighter regulation of the industry. This includes new rules introduced last January that caps the fees and interest that can be charged to no more than double the amount borrowed.

 

Loan shark dangers

If you’ve been turned down for a short-term loan, it’s no surprise you may look elsewhere for the money.

The CFA report suggests that 4% of people who are rejected for short-term lending go to unlicensed lenders instead. The same survey also showed that more than three quarters of people are unable to tell if their lender was licensed or not.

If you search online, for a loan, watch out for websites which look legitimate but are really based overseas. They won’t have to follow the new regulations capping fees and charges, so you could end up paying far more than you expect.

However, loan shark lenders are probably the worst option. Though these illegal lenders will often start out friendly and supportive, not only are interest rates far more than elsewhere, missing payments could lead to harassment or pressure to borrow more money to cover costs.

 

Alternatives to payday loans

Instead of going down these routes and taking on additional debt, consider all the alternatives available first.

Depending on why you need the money, you’ll find lots of different options. You might even find you don’t need to borrow money at all.

Below is an example of the costs of alternative consumer borrowing;

 

LFgraphic_borrowing